CONTACT:	Teresa Ciambotti, SVP, Director of Investor Relations (814) 231-6401
HEADLINE:	Omega Financial Corporation Third Quarter Earnings Up Nearly 7%

FOR IMMEDIATE RELEASE ¾ October 18, 2006 ¾

STATE COLLEGE, PA – Net income for Omega Financial Corporation (NASDAQ:OMEF) rose by 6.8% to $5.942 million in the third quarter of this year, compared to the same period last year, company officials said. Per share diluted earnings increased by the same percentage to $0.47.

Donita R. Koval, Omega’s president and chief executive officer, attributed the increases to strong performances in managing the net interest margin, continuing diligent cost controls and ongoing efforts to grow non-interest income.

Koval stated the company’s net interest margin for the quarter increased 9 basis points to 4.08% from 3.99% on a fully tax-equivalent basis. The company’s Return on Average Tangible Assets was 1.37% and Return on Average Tangible Equity 15.46%, representing an increase of 12.3% and 5.3%, respectively. Common share dividends declared for the period were unchanged at $0.31.

For the year to date, Omega’s net interest margin rose 17 basis points to 4.05% from 3.88% in 2005, while net income declined to $16.6 million, compared to $17.5 million in 2005. Koval said that one time gains from the sales of assets and investments and the early extinguishment of debt in 2005 and 2006, combined with a loss on the disposal of discontinued operations in 2006 were largely responsible for the difference. Excluding those transactions, she said, results in an increase in year-to-date net income just over 3%.

In non-interest income, the company recorded a 3.7% improvement in the third quarter, excluding gains on the sales of assets and investments. The increase was largely due to increases in service fees on loans and deposits. For the year to date, non-interest income was up 4.5% excluding gains on the sales of assets and investments and gains on the early extinguishment of debt.

Koval stated Omega continued its expense control efforts, resulting in a decrease of nearly 2.5% in the third quarter of 2006 versus the same period last year. For the year to date, non-interest expenses were contained to less than one percent increase.

In the first quarter of 2006, approximately $20 million in loans for one commercial borrower was placed on non-accrual status. Omega continues to evaluate this credit relationship and has increased the amount of loan loss allowance allocated to this borrower to $3.5 million as of September 30, 2006. Despite this increased allowance, no provision was necessary this quarter due to a large recovery on a previously charged off loan and other credit improvements.

In the third quarter, the Company completed the sale of its Sentry Trust affiliate which it acquired in the 2004 merger with Sun Bancorp. The results of Sentry Trust are reflected as discontinued operations in the consolidated statements of income and Sentry’s related assets and liabilities have been segregated as such on the consolidated balance sheets. Additionally, the Company has agreed to sell three branch locations as it continues refining its retail network in the wake of the merger. The assets and liabilities of these branches are classified as held for sale in the September 30, 2006 consolidated balance sheet. One of the branch sales was completed earlier this month and the other two are expected to close before December 31, 2006.The branch sales are expected to result in a pre-tax gain of approximately $2.3 million.

Quarterly and annual reports, a corporate profile, stock quotes and other financial data can be accessed through the Omega web site at www.omegafinancial.com. Financial statements and selected financial highlights are summarized on the following pages.

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated * )
	Three Months Ended September 30,									Nine Months Ended September 30,
	2006			2005			% Change			2006			2005			% Change
Earnings:
Net income	$	5,942		$	5,565			6.8	%	$	16,630		$	17,523			(5.1	)%
Per share statistics: *
Diluted earnings	$	.47		$	.44			6.8	%	$	1.32		$	1.38			(4.3	)%
Dividends declared — common		.31			.31			—			.93			.93			—
Book value — common		25.69			25.28			1.6			25.69			25.28			1.6
Book value — tangible		12.44			11.74			6.0			12.44			11.74			6.0
Market value — High		32.38			33.50			(3.3	)		34.21			34.50			(0.8	)
Low		28.12			26.55			5.9			27.88			32.22			(13.5	)
Financial position at period end:
Assets	$	1,876,690		$	1,971,830			(4.8	)%	$	1,876,690		$	1,971,830			(4.8	)%
Net loans (1)		1,165,020			1,215,688			(4.2	)		1,165,020			1,215,471			(4.2	)
Deposits (1)		1,389,788			1,447,850			(4.0	)		1,389,788			1,447,850			(4.0	)
Shareholders’ equity		322,974			318,540			1.4			322,974			318,540			1.4
Average Balances:
Assets	$	1,902,291		$	1,989,655			(4.4	)%	$	1,909,952		$	2,013,623			(5.1	)%
Net loans (1)		1,171,336			1,228,200			(4.6	)		1,180,286			1,260,896			(6.4	)
Deposits (1)		1,407,941			1,496,702			(5.9	)		1,410,603			1,502,997			(6.1	)
Shareholders’ equity		322,902			322,500			0.1			322,080			320,372			0.5
Non-Performing Loans at period end:
Non-accrual loans	$	23,263			7,006			232.0	%	$	23,263			7,006			232.0	%
Accruing loans past due 90 days or more		2,943			2,452			20.0			2,943			2,452			20.0
Restructured loans		—			215			(100.0	)		—			215			(100.0	)
Profitability ratios — annualized: *
Return on average assets		1.25	%		1.12	%		11.7	%		1.16	%		1.16	%		0.1	%
Return on tangible assets		1.37			1.22			12.3			1.27			1.27			—
Return on average stated equity (2)		7.36			6.90			6.6			6.88			7.29			(5.6	)
Return on average tangible equity (3)		15.46			14.68			5.3			14.55			15.73			(7.5	)
Net interest margin — fully tax equivalent		4.08			3.99			2.3			4.05			3.88			4.4
Shares outstanding at period end: *
Common		12,573,916			12,609,546			(0.3	)%		12,573,916			12,609,546			(0.3	)%
(1) Includes amounts classified as held for sale
(2) Average stated equity is equal to average shareholders’ equity.
(3) Average tangible equity represents average shareholders’ equity less average intangibles and goodwill.

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
	September 30,			December 31,
Assets	2006			2005
Cash and due from banks		$52,733		$	56,194
Interest bearing deposits with other banks		11,664			8,908
Federal funds sold		7,150			—
Trading securities		43			468
Investment securities available for sale		315,175			347,300
Other investments		11,885			6,055
Investment in unconsolidated subsidiary		1,625			1,625
Loans held for sale		-			264
Total portfolio loans		1,152,089			1,214,591
Less: Allowance for loan losses		(14,827	)		(15,482	)
Net portfolio loans		1,137,262			1,199,109
Premises and equipment, net		31,420			35,997
Other real estate owned		525			956
Bank-owned life insurance		75,706			75,144
Investment in limited partnerships		5,964			6,612
Core deposit intangibles		5,825			6,729
Other intangibles		1,112			1,193
Goodwill		159,387			159,191
Assets held for sale		32,122			—
Assets of discontinued operations		-			4,599
Other assets		27,092			29,635
TOTAL ASSETS		$1,876,690		$	1,939,979
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing		$236,783		$	236,683
Interest bearing		1,118,342			1,185,847
Total deposits		1,355,125			1,422,530
Short-term borrowings		62,708			90,153
ESOP debt		1,574			1,845
Junior subordinated debentures		56,318			56,692
Long-term debt		28,224			36,322
Other interest bearing liabilities		815			882
Liabilities held for sale		34,690			—
Liabilities of discontinued operations		-			156
Other liabilities		14,262			12,909
TOTAL LIABILITIES		1,553,716			1,621,489
Shareholders’ Equity
Preferred stock, par value $5.00 per share:
Authorized - 5,000,000 shares, none issued
Common stock, par value $5.00 per share:
Authorized - 25,000,000 shares;
Issued - 12,774,585 shares at September 30, 2006;
12,670,323 shares at December 31, 2005;		63,889			63,368
Outstanding - 12,573,916 shares at September 30, 2006;
12,599,508 shares at December 31, 2005;
Capital surplus		102,030			99,874
Retained earnings		164,711			159,583
Accumulated other comprehensive income			(550)		(1,226	)
Unearned compensation related to ESOP debt			(928)		(1,125	)
Cost of common stock in treasury:
204,415 shares at September 30, 2006
70,815 shares at December 31, 2005		(6,178	)		(1,984	)
TOTAL SHAREHOLDERS’ EQUITY		322,974			318,490
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,876,690		$	1,939,979

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
	Unaudited
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Interest Income:
Interest and fees on loans	$	20,621		$	19,887		$	60,830		$	58,846
Interest and dividends on investment securities		3,043			2,975			9,224			8,031
Other interest income		516			288			858			984
TOTAL INTEREST INCOME.		24,180			23,150			70,912			67,861
Interest Expense:
Interest on deposits		6,824			5,754			19,128			16,005
Interest on short-term borrowings		708			576			2,142			1,504
Interest on long-term debt and
other interest bearing liabilities		1,259			1,211			3,771			4,151
TOTAL INTEREST EXPENSE		8,791			7,541			25,041			21,660
NET INTEREST INCOME		15,389			15,609			45,871			46,201
Provision for loan losses					290			220			612
INCOME FROM CREDIT ACTIVITIES		15,389			15,319			45,651			45,589
Other Income:
Service fees on deposit accounts		2,594			2,409			7,546			6,857
Service fees on loans		445			362			1,270			989
Earnings on bank-owned life insurance		620			571			1,779			1,720
Trust fees		919			1,017			3,064			3,188
Investment and insurance product sales		668			619			2,210			2,429
Gain on the early extinguishment of debt		—			—			—			1,043
Gain (loss) on sale of loans and other assets		112			(1	)		233			(379	)
Net gains on the sale of investment securities		577			134			815			1,671
Other		1,226			1,263			3,607			3,441
TOTAL OTHER INCOME		7,161			6,374			20,524			20,959
Other Expense:
Salaries and employee benefits		7,397			7,527			22,189			22,046
Net occupancy expense		1,019			1,002			3,207			3,105
Equipment expense		1,111			1,028			3,382			3,124
Data processing service		683			632			2,001			1,879
Pennsylvania shares tax		598			107			2,038			1,275
Amortization of intangible assets		221			234			664			591
Other		3,517			4,384			10,967			12,354
TOTAL OTHER EXPENSE		14,546			14,914			44,448			44,374
Income before income taxes and discontinued operations		8,004			6,779			21,727			22,174
Income tax expense		1,953			1,388			5,004			4,771
Income from continuing operations		6,051			5,391			16,723			17,403
Discontinued operations:
Income from discontinued operations, net of tax		284			174			446			120
Loss on disposal of discontinued operations, net of tax		(393	)		—			(539	)		—
Income (Loss) from discontinued operations		(109	)		174			(93	)		120
NET INCOME	$	5,942		$	5,565		$	16,630		$	17,523
Net income per common share:
Basic	$	0.47		$	0.44		$	1.32		$	1.39
Diluted	$	0.47		$	0.44		$	1.32		$	1.38
Net income per common share from continuing operations
Basic	$	0.48		$	0.43		$	1.33		$	1.38
Diluted	$	0.48		$	0.43		$	1.33		$	1.37
Net income per common share from discontinued operations
Basic		($0.01	)	$	0.01			($0.01	)	$	0.01
Diluted		($0.01	)	$	0.01			($0.01	)	$	0.01
Weighted average shares and equivalents:
Basic		12,560			12,616			12,573			12,606
Diluted		12,592			12,666			12,615			12,658
Dividends declared per share:
Common		0.31			0.31			0.93			0.93

Omega Financial Corporation
Consolidated Net Interest Income Analysis
3rd Quarter 2006 vs. 3rd Quarter 2005
(In thousands)
	Third Quarter 2006								Third Quarter 2005								Increase			Decrease
							-								-
	Average						Income/		Average						Income/		Due To			Due To			Net
	Balance			Rate			Expense		Balance			Rate			Expense		Volume			Rate			Change
INTEREST EARNING ASSETS
Money Market Investments
Interest Bearing Deposits		19,627			3.96	%		196		20,513			2.88	%		149		(7	)		54			47
Federal Funds Sold		24,033			5.28	%		320		16,966			3.25	%		139		72			109			181
Total Money Market Investments		43,660			4.69	%		516		37,479			3.05	%		288		66			162			228
Investment Securities
U.S. Treasuries and Agencies		271,150			3.77	%		2,580		263,072			3.46	%		2,293		73			214			287
State and Municipals-Tax Free		26,803			2.25	%		151		65,391			2.91	%		475		(234	)		(90	)		(324	)
Corporate Securities		21,573			5.79	%		312		16,388			4.95	%		203		71			38			109
Total Investment Securities		319,526			3.78	%		3,043		344,851			3.43	%		2,971		(90	)		162			72
Loans
Commercial Loans		256,460			7.49	%		4,840		264,151			6.68	%		4,445		(132	)		527			395
Tax Free Commercial Loans		18,615			4.77	%		224		19,860			4.85	%		243		(15	)		(4	)		(19	)
Real Estate Loans		685,903			6.88	%		11,798		762,124			6.28	%		11,961		(1,262	)		1,099			(163	)
Tax Free Real Estate Loans		40,487			4.41	%		446		39,352			4.14	%		407		12			27			39
Personal Loans and Leases		184,790			7.11	%		3,313		157,933			7.11	%		2,831		482			—			482
Total Loans		1,186,255			6.93	%		20,621		1,243,420			6.38	%		19,887		(916	)		1,650			734
Total Earning Assets		1,549,441			6.22	%		24,180		1,625,750			5.68	%		23,146		(940	)		1,974			1,034
FUNDING SOURCES
Interest Bearing Liabilities
Checking with Interest		308,275			0.80	%		620		372,511			0.81	%		764		(134	)		(10	)		(144	)
Money Market Accounts		83,756			1.51	%		318		106,391			1.42	%		381		(86	)		23			(63	)
Savings Accounts		196,299			0.55	%		272		219,285			0.55	%		304		(32	)		—			(32	)
CD’S, $100,000 and Over		98,731			4.19	%		1,042		93,893			3.52	%		832		45			165			210
Other Time Deposits		478,506			3.79	%		4,572		467,897			2.94	%		3,473		80			1,019			1,099
Total Interest Bearing Deposits		1,165,567			2.32	%		6,824		1,259,977			1.81	%		5,754		(128	)		1,198			1,070
Other Borrowed Funds-Short Term		71,891			3.91	%		708		71,336			3.20	%		576		5			128			132
Long Term Debt		84,774			5.90	%		1,250		83,630			5.76	%		1,205		16			29			45
Other Interest Bearing Liabilities		819			4.40	%		9		847			2.83	%		6		(0	)		3			3
Demand Deposits		242,375								236,725
Cash		(50,363	)							(54,547	)
Other		34,378								27,782
Total Funding Sources		1,549,441			2.25	%		8,791		1,625,750			1.84	%		7,541		(107	)		1,357			1,250
Net Int Spread — Net Int Income					3.97	%		15,389					3.84	%		15,605		(833	)		617			(216	)
Net Int Spread-Tax Equivalent					4.08	%							3.99	%
Tax Equivalent Net Int Income								15,831								16,211